On Tuesday, Johnson & Johnson (NYSE:JNJ) posted better-than-expected third quarter sales and adjusted profit. Fueled by strong results, Johnson & Johnson raised its full year profit and sales guidance. Also on Wednesday, the struggling pharmacy chain operator, Walgreens Boots Alliance Inc (NASDAQ:WBA) announced it will be shutting down 1,200 of its stores. Under the new leadership of Tim Wentworth, WBA has embarked on a turnaround journey amid a challenging climate shaped by sluggish consumer spending and low drug reimbursement rates.

Third Quarter Highlights

For the quarter ended in September, the pharmaceutical and medical device company posted sales of $22.47 billion, implying a YoY growth of 5.2%.

Medical devices unit reported sales grew 5.8% to $7.9 billion, but MedTech had faced "headwinds" in the form of economic slowdowns in China and Japan, as well as a physician's strike in Korea.

Across the globe, J&J's cancer drugs rose nearly 19%, led by more than $3 billion for multiple myeloma treatment Darzalexwhose sales grew 20.7% YoY due to regulatory approval for additional uses. CFO Joe Wolk said that the continued adoption of the subcutaneous version of Darzalex has been shown to significantly reduce treatment time. Cancer cell therapy, Carvykti, brought in sales of $286 million.

On the other hand, its blockbuster psoriasis drug Stelara postes a revenue drop of 6.6% as sales amounted to $2.68 billion, with sales expected to fall further next year with as many as six biosimilar competitors in the U.S.

Due to one-time expenses including acquisitions and legal costs, net income tanked 38% to $2.69 billion. But although adjusted earnings dropped 9% YoY to $2.42 per share, they still topped LSEG's consensus estimate of $2.21 per share.

An Outlook Boost

The New Jersey-based healthcare conglomerate lifted its full year outlook. While Johnson and Johnson previously expected to post full year sales between $89.2 billion and $89.6 billion, it now guided for a range between $89.4 billion and $89.8 billion. Including one-time charges related to mergers and acquisitions, Johnson & Johnson expects full year earnings to be between $9.86 and $9.96 per share, having tweaked its prior estimate due to improved performance outlook that was offset by a charge from its latest acquisition that closed last week, concerning the privately-held medical technology company V-Wave

Despite Stelara's loss of exclusivity, J&J remains confident it can post 2025 pharmaceutical sales above its $57 billion target.

Although talc ligitation concerns remain as a cloud over its long-term picture, Johnson & Johnson has atleast eased worries when it comes to its current business and financial performance.

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